Part 8/11:
Performance and Management Style
ETFs: Mostly index funds that aim to mirror benchmark indices like the S&P 500 or the STI. They track the market rather than try to outperform it. During a market downturn, ETFs will decline along with the whole market because there's no human intervention during trading hours.
Mutual Funds: Offer flexibility to actively react to market changes. Fund managers can adjust asset allocations—shifting between equities and bonds—to contend with market volatility. However, active management does not guarantee beating the market, and some funds may underperform.